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Fiscal Year 2021 Operating Budget Proposal

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Fiscal Year 2021 Operating Budget Proposal Southeastern Pennsylvania Transportation Authority FISCAL YEAR 2021 OPERATING BUDGET PROPOSAL July 1, 2020 through June 30, 2021 and Fiscal Years 2022 – 2026 Financial Projections Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to Southeastern Pennsylvania Transportation Authority, Pennsylvania, for its Annual Budget for the fiscal year beginning July 1, 2019. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. i. Southeastern Pennsylvania Transportation Authority Board Members Chairman Pasquale T. Deon, Sr. Vice-Chairman Honorable Kenneth Lawrence, Jr. Bucks County Chester County Delaware County Pasquale T. Deon, Sr. Joseph E. Brion, Esquire Thomas E. Babcock Honorable Charles H. Martin Kevin L. Johnson, P.E. Mark H. Dambly Montgomery County City of Philadelphia Robert D. Fox, Esquire Michael A. Carroll, P.E. Honorable Kenneth Lawrence, Jr. Governor’s Appointee Obra S. Kernodle, IV Senate Majority House Majority Leader Appointee Leader Appointee Honorable Stewart J. Greenleaf Honorable Marcy Toepel Senate Minority House Minority Leader Appointee Leader Appointee William J. Leonard, Esquire John I. Kane SEPTA Officers General Manager Leslie S. Richards Deputy General Manager - Treasurer Richard G. Burnfield General Counsel Gino J. Benedetti, Esquire Controller to the Board Stephen A. Jobs, CPA Secretary to the Board Carol R. Looby ii SEPTA FY 2021 Operating Budget Proposal Table of Contents PREFACE GFOA Award .............................................................................................................. i SEPTA Board Members and Officers......................................................................... ii Table of Contents ..................................................................................................... iii 1. INTRODUCTION AND PROFILE SEPTA History ........................................................................................................... 1 SEPTA Service Profile at a Glance ............................................................................ 2 SEPTA Rail & Transit Maps ....................................................................................... 3 Passenger Profile ...................................................................................................... 5 Customer Satisfaction Ratings/Key Regional Transportation Trends ......................... 7 Strategic Business Plan ............................................................................................ 9 Key Performance Indicators ..................................................................................... 10 2. THE BUDGET PROCESS Budget Development ............................................................................................... 17 Fiscal Year 2021 Calendar ...................................................................................... 18 Key Activities in the Budget Process ........................................................................ 19 3. FISCAL YEAR 2021 ASSUMPTIONS & CONSOLIDATED BUDGET Assumptions ............................................................................................................ 20 Fiscal Year 2021 Consolidated Budget ................................................................... 21 4. FINANCIAL & BUDGETARY POLICIES Financial Planning Policies ...................................................................................... 22 Revenue Policies ..................................................................................................... 23 Expenditure Policies ................................................................................................ 24 Description of Existing Debt and Debt Service Policies ............................................ 24 Statement of Changes in Equity ............................................................................... 30 5. ORGANIZATIONAL STRUCTURE Operating Divisions .................................................................................................. 31 Operating and Staff Departments ............................................................................ 32 Corporate Team Organization Chart ........................................................................ 34 iii SEPTA FY 2021 Operating Budget Proposal Table of Contents 6. THREE YEAR COMPARISON FISCAL YEARS 2019 - 2021 Consolidated .......................................................................................................... 35 City Transit Division ............................................................................................... 36 Victory Division ...................................................................................................... 37 Frontier Division ..................................................................................................... 38 Regional Rail Division ............................................................................................. 39 7. FINANCIAL PROJECTIONS Summary of Assumptions ........................................................................................ 40 Financial Projections of Consolidated Budget .......................................................... 41 8. OPERATING REVENUE AND SERVICE PLAN OVERVIEW Annual Service Plan Overview ................................................................................. 42 Revenue Assumptions by Category ......................................................................... 43 Ten Year Revenue Trends ....................................................................................... 44 Summary of Operating Revenue .............................................................................. 45 9. OPERATING SUBSIDIES Subsidy Allocation and Detail .................................................................................. 46 Service Stabilization Fund ....................................................................................... 49 Detail of Subsidies ................................................................................................... 50 Summary of Operating Subsidies ............................................................................ 51 Detail of Local Subsidies and Other by County ........................................................ 52 Summary of Local Subsidies by County ................................................................... 53 10. OPERATING EXPENSES Expense Assumptions by Category ......................................................................... 54 Ten Year Expense Trends ....................................................................................... 56 Summary of Operating Expenses ............................................................................ 58 FY 2021 Budget Proposal – Detail of Expenses ...................................................... 59 FY 2021 Budget Proposal – Allocation By Company ............................................... 60 FY 2020 Budget – Detail of Expenses ..................................................................... 61 FY 2019 Actual – Detail of Expenses ....................................................................... 62 iv SEPTA FY 2021 Operating Budget Proposal Table of Contents 11. HEADCOUNT AUTHORIZATIONS Headcount Designations .......................................................................................... 63 Fiscal Year 2021 Headcount Authorizations ........................................................... 64 Fiscal Years 2017-2021 Headcount Authorization .................................................. 66 Headcount Authorization Cause of Change ............................................................. 68 12. DEPARTMENTAL SUMMARIES BY DIVISION Corporate Staff... ......................................................................................................... 71 Transit Police... ........................................................................................................... 76 System Safety ............................................................................................................. 80 Operations ................................................................................................................... 86 Vehicle Engineering and Maintenance ....................................................................... 99 Engineering, Maintenance and Construction .......................................................... 110 Deputy General Manager/Treasurer’s Staff ............................................................ 122 Finance .................................................................................................................... 133 Planning and Strategic Initiatives ............................................................................ 143 Employee Development and Relations ................................................................... 151 Human Resources ................................................................................................... 158 Procurement, Supply Chain and Disadvantaged Business Enterprise .................. 164
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